Internet Shopping and Import Duties

February 2006

Customs and Excise, or HMRC as they are now known, issued a Press Release recently that is intended to inform Internet shoppers that hidden duties, including import VAT, will be levied on goods valued at more than £18 bought from non-UK based Internet retailers.

These duties are taking buyers by surprise, especially on purchases sent by American companies.

A customs declaration has to be made by the sending company on your parcel, and you will be regarded as the importer of these goods, whether for private use or for onward sale, new or used, bought by you or someone else as a gift for you.

The import duties payable by you will depend on the type of goods that you have purchased. Cash will be demanded when the postman knocks on your door, so be prepared!

Although customs duty is not payable on goods bought within the EU, VAT may be payable with special rules applying to cigarettes, tobacco and alcohol. Personal import allowances of the duty free kind, that operate when travelling outside the EU, do not apply when the goods are supplied by post or courier.

AND, if you are tempted to make a false or misleading customs declaration on your parcel then you risk further financial penalties, criminal prosecution and forfeiture of the goods themselves.